Farm business diversification

Agricultural contracting can be a good way to bring in more income. For example, you may have machinery or other resources that you can contract out to other farmers. However, you must go in with your eyes open, do the research, and ensure there is a market for the services you can offer.

When is the right time for diversification? What should you consider, and what tools are available to plan a farm diversification? Watch this webinar to find answers, and to hear the real-life story of a successful diversification.

You should ensure your existing enterprises are running smoothly, meet the objectives set out in their business plans, and are on target for the projections set out in their respective profit and loss accounts. Any issues in your current business could be magnified if you diversified.

If you decide to diversify, you need to produce a business plan. For diversification, you should also research your competition, consider product and pricing, and work out how to market your product or services to potential customers. These aspects should be included as sections in your business plan.

• The Government's Diversifying farming businesses guidance was withdrawn in June 2019, but is still valid and useful
• The Farm Business Innovation 2023 event is for landowners seeking to diversify 

It is always important to get advice and guidance when considering the future of your business and any potential diversification, and communicate with anyone involved.  

Non-food crops and renewable energy

• Industrial energy and non-food crops: business opportunities for farmers
• Industrial fibre crops
• Renewable energy
• Farm anaerobic digestion
• Wind power
• Solar photovoltaic (PV)
• Agroforestry and silvopasture

Leisure and hospitality

• Bed and breakfast
• Holiday accommodation, glamping
• Wedding venues
• Livery
• Permitted development rights for agriculture and forestry 
• Permitted development rights for the change of use of agricultural buildings 
• Educational activities
• Farm attractions 

On-farm production and sales

• Direct meat sales and box schemes
• On-farm dairy processing: a beginners guide
• Raw drinking milk and raw cream control requirements 
• The National Farmers’ Retail and Markets Association
• Exporting food

Contents 

• What is a business plan? 
• Introducing your business 
• Market analysis 
• Financial information 
• Sales and operations 
• Funding requirements 
• HR structure 
• Executive summary 
• Making changes to your business 
• Talking things through 
• Understanding your finances and farm business accounts